The transition team for President-elect Donald Trump is reportedly looking to slash support for electric vehicle (EV) programs set up by the Biden administration, including the $7,500 EV tax credit. The team also plans to ease regulations on fossil-fuel emissions, lodge global tariffs, and push to end subsidies for the auto industry.
According to a document seen by Reuters, the transition team recommends imposing tariffs on all battery materials worldwide, before negotiating individual exemptions with allies. This plan aims to bolster the domestic supply chain for battery materials, many of which are produced in China and heavily subsidized in the U.S.
President Trump has campaigned on promises to support the auto industry and allow space for both gas-powered cars and electric vehicles. His transition team also plans to roll back the $7.5 billion plan passed under Biden to help aid the buildout of charging stations for EVs, instead shifting funding towards national defense efforts.
The transition team proposes using Section 232 tariffs, which aim to limit the import of items related to potential national security threats. They also plan to waive environmental reviews to accelerate “federally funded EV infrastructure projects” such as battery production and recycling.
Other proposals include ditching federal requirements for electrifying government fleets, utilizing the Export-Import Bank of the U.S. to provide financial support for U.S. batteries, and ending restrictions on exports of EV battery technology to countries deemed adversaries.
Tesla CEO Elon Musk has argued that ending the $7,500 tax credit may benefit his company by harming other automakers more. Trump’s transition team has also proposed removing regulations and accelerating self-driving vehicle development.
Source: https://www.teslarati.com/trump-ev-program-cuts-tariffs-report